NATURAL CAPITALISM

Book in great condition.

Paul Hawken and the Lovins have teamed up to provide one of the best overall books on "Natural Capitalism" which offers a whole new approach to the way in which we do business. For too long we have taken natural capital for granted, squandering our natural resources and unleashing an unhealthy array of by-products which have further contaminated our world. It is time to add natural capital to the ledger sheets, properly balancing our record books. But, far from being a screed the book is meticulously researched with extensive notes and references to help guide your own research into the subject. Everything from the Toyota Production System, which offered a leaner, much less wasteful approach to auto manufacturing, to the Hypercar which offers a hybrid-electric propulsion engine which would result in much greater fuel effeciency are illustrated. It is this lean thinking which the authors think will revolutionize the industrial sector, making for the greatest breakthroughs since the microchip revolution. What is most heartening is that major companies such as Ford Motor Company and Carrier Air Conditioning are adopting these practices and making them work. They are doing so because it saves money and provides them with endless growth possibilities. The authors support the lease-use system which puts the onus on the manufacturer to produce better products and maintain them throughout their service to the user, the so called "cradle to cradle" concept. New materials are resulting in much lighter and more efficient components that would reduce our dependency on foreign oil, and in time phase out petroleum products all together. Too good to be true you might say, but this is the shape of things to come once we get past the tired old dogmas that have greatly limited our economic potential. The authors show how regressive tax policies and federal subsidies have greatly handicapped our productivity and they encourage political leaders to rethink the way we hand out incentives for better business practice. This book will give you a whole new lease on life, and encourage you to rethink the way you live.

Most responses to political and social problems fall into two broad categories: libertarian/populist and authoritarian/statist. And too often, "leftist" critiques of capitalism fall into the latter category, crying "market failure" and calling for central control by government regulation. This book is the _other_ sort. And it represents the fulfillment of a long line of "hippie spirituality" that began over thirty years ago, got some airtime in Stephen Gaskin's books and Paul Williams's _Das Energi_, was put into practice at a broad level by the Grateful Dead, was incorporated into Marilyn Ferguson's _Aquarian Conspiracy_, received a consistently libertarian exposition in Mary Ruwart's _Healing our World_, and -- if Paul Hawkens and the Lovinses are right -- looks to be the wave of the future if we're going to have a future at all. (Incidentally, Gaskin recommended this book when he ran for President in 2000.) One tremendous strength of their approach is their avoidance of a very common error. Too many critics of eco-stupidity and corporate irresponsibility take themselves to be critics of the "free market" as such, failing to realize that their proposed solutions are, in an economic sense, just as "capitalistic" as (if not more so than) the problems. What they propose to replace "capitalism" by is, in fact, just capitalism again, but populated by people with better values. Well, these folks know that's exactly what they're doing, and what they propose is in effect the best general response to cries of "market failure". In a strictly economic sense, every "market failure" really represents a place that the "market" hasn't reached yet. Under the Hawken/Lovins proposal, "markets" work just fine if they take account of _all_ relevant costs. Economically, what they're saying is that (e.g.) polluters have to _internalize_ the costs of pollution. Is there a libertarian out there who would disagree in principle? Oh, we could pick nits about the details. The point, though, is that Hawkens and the Lovinses are presenting here a vision of the "free market" as what economists have always said it was: an organic, emergent, genuinely interdependent network of centers of genuinely voluntary activity by fully informed and self-responsible actors. And the resulting society looks like hippies have always said it should: less like the military-industrial complex and more like a Grateful Dead concert ;-). If Aquarian libertarianism is (as Mary Ruwart says) the key to "healing our world", then the sort of green eco-capitalism represented here is a pretty sound prescription for that healing. The Dream isn't dead, and it isn't economically irresponsible either.

If there was one key to turning around the damaging business and environmental practices of modern culture, what would it be? 'Natural Capitalism,' the seminal 1999 call for a broader focus on sustainability, presents an overwhelming case that the key is resource efficiency and effectiveness. Just as conventional capitalism is all about using financial capital effectively, so 'natural capitalism' is about expanding that bottom line focus to include the natural resources and ecosystem services underlying the ability of business and society to function in the first place. The authors argue that with appropriate shifts in business perspective and government policy, our economy could be something like 90% more efficient in its use of irreplaceable natural resources, thereby mitigating ecosystem impacts, enabling global development, and staving off climate change. Throughout history, until very recently, man has been a small actor in an overwhelmingly large world. Most of the book explores how this has given rise to our ingrained cultural patterns of wasteful resource utilization, limited focus on capital efficiency, and drive for production volumes, while assuming unbounded access to subsidized natural resources and 'free' ecosystem services. Shifting perspective to include natural capital on the business balance sheet, and to expand lean manufacturing principles beyond the factory walls is what's required to address the ecology/climate change nexus. This change in perspective is embodied in a range of sustainable business concepts, including the 'triple bottom line' (profits, people, and planet), and the 'cradle-to-cradle' model for recycling products and integrating industries to eliminate 'waste'. The basic principles of natural capitalism put forward can be summarized as: (1) focus on natural resource efficiency (2) using closed loop, biomemetic, nontoxic processes (3) to deliver more appropriate end-user services (4) while investing in restoring, sustaining, and expanding natural capital. Following these principles leads not to constraints on business or lowered expectations, but an enormous range of new business opportunities to profit from improved efficiencies and environmentally beneficial activities. One of the best expressions of this perspective comes in the discussion on climate change, providing a refreshing contrast to the recent spate of bad news on this front: "Together, the [available business] opportunities can turn climate change into an unnecessary artifact of [our] uneconomically wasteful use of resources." While the authors deliver an awesome, deeply researched articulation of their vision, showing with many examples why it's important and how it can work within our current capitalistic economies, the book has two key flaws. First, it falls prey to the syndrome first articulated by Paul Saffo, founder of the Institute for the Future, of confusing a clear vision of the future with a short path. This combines with an excessive reliance on sheer volume of examples to make their points, too many of them poorly explained, bristling with non-comparable numbers, and substituting hand-waving for real outcomes. Deeper exploration of fewer examples might have illustrated the principles better, and have been much easier to read. Also, 11 years after the original publication, many of the examples are seen to be hastily chosen and and used to support glib and overreaching conclusions that make the authors seem naive. Examples include the advent hydrogen powered cars ("hypercars"), the potential for shutting down Ruhr Valley coal production in favor of direct social payments to coal workers, or the imminent triumph of the Kyoto Protocols for international carbon trading. And, while much attention is paid to articulating the perverse incentives, misguided taxes and subsidies, and split responsibilities that impede more efficient system approaches, there's short shrift given to new technology adoption rates, the scale of existing infrastructure investments, or the political complexities of changing incentives and subsidies. However, if you are interested in understanding the genesis and foundations of the modern sustainability movement, this is a fundamental text. Despite its flaws, after 11 years the fundamental argument and principles hold up well and are still inspiring.

Having just graduated from an Ivy League business school and reading Natural Capitalism, I was shocked this book was not part of the required reading at my school. It represents the next iteration in thinking about economics, specifically to think of the earth as not just a valuable and limited resource, but as a willing cocreator of a positive future. The examples ranging from real estate to factory production to product design to urban planning all highlighted a way of thinking not necessarily akin to wealth creation so much as they provided a context to apply multilateral thinking to business problem solving. For the cold hard facts on how to evolve our economy into one which makes more sense, please pick up a copy of this book. However, this book is only part of the story. In addition to progressive economics and systems thinking, we also need next generation leaders who care enough to go this extra mile. Natural Capitalism does an excellent job of outlining the path and reasons to think differently, however it stops short on how we find the people to take this initiative. For this I recommend, Are You Ready to Succeed? by Srikumar Rao. Throughout this journey Dr. Rao evolves present day capitalists into the leaders of the future, full of purpose, drive and creativity. Are You Ready to Succeed and Natural Capitalism are a natural fit as one develops the human qualities required for the future and the other lays out the road map.